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HomeMy WebLinkAboutMINUTES - 10282008 - C.97 TO: BOARD OF SUPERVISORS g L Contra FROM: INTERNAL OPERATIONS COMMITTEE • Costa DATE: OCTOBER 13, 2008 �OSTa couK �~ Coun ty SUBJECT:. LOCAL VENDOR PREFERENCE PROGRAM SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: I. RECALL that on September 13, 2005,the Board adopted Ordinance No. 2005-29 establishing a local °vendor preference program in order to encourage local businesses to provide goods to Contra Costa County through the County's purchasing program. 2. ACCEPT report on the County's experience with the local vendor preference program during the one- year period June 1, 2007 through May 30, 2008. 3. DIRECT the General Services Department to make another experience report in August 2009 covering the period July 1, 2008 through June 30, 2009. BACKGROUND: On August 16, 2005,the Internal Operations Committee proposed a new ordinance, which the Board of Supervisors adopted in September 2005, to enact a local bid preference program. Under the ordinance, if the low bid in a commodities purchase is not a local vendor, any responsive local vendor who submitted a bid which wa:;within five percent(5%) of the lowest responsive bid as determined by the purchasing agent shall have the option of submitting a new bid within 48 hours(not including weekends and holidays) r CONTINUED ON ATTACHMENT: YES SIGNATURE: __ ]OMENDATION OF COUNTY ADMINISTRATOR ✓RECOMMEND OF BOARD COMMITTEE PROVE OTHER SIGNATURE(S): SU�S�A.N�/� O LA.CC IR GAYLE B. KE VIA ACTION OF BOARD ON V(.-I V� )! '�APPROVE AS RECOMMENDED O R VOTE OF SUPERVISORS / I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ABSENT AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ATTESTED: OCTOBER 28,2008 CONTACT: JULIE ENEA(925)335-1077 DAVID J.TWA,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: INTERNAL OPERATIONS COMMITTEE STAFF 1 GENERAL SERVICES DIRECTOR GSD-PURCHASING AND MATERIALS MANAGER B r I(I' �(IU�V�(/ DEPUTY Annual:Experience Report Under the Local Vendor Preference Program October 13,2008 Internal Operations Committee Page 2 of the County's delivery of notification. Such new bids must be in an amount less than or equal to the lowest responsive bid as determined by the purchasing agent. If the purchasing agent receives any new bids from the local vendors who have the option of submitting new bids within the 48-hour period,he shall award the contract to the local vendor submitting the lowest responsible bid. If no new bids are received,the purchasing agent shall award the contract to the original low bidder. The ordinance defines a local vendor as any business that has its headquarters, distribution point, or locally-owned franchise located in or having a street address within the county for at least six months immediately prior to the issuance of the request for competitive bids, and holds a valid business license by a jurisdiction located in Contra Costa County. Under the ordinance, a vendor falsely certifying itself as local would be ineligible to conduct business with the County for a period not less than three months and not more than two years, as determined by the purchasing agent. Following is a table illustrating the 2007/08 experience as compared to the 2006/07 experience. Local Vendor Preference Program 2006/07 2007/08 Qty Value Q_yt Value Transactions Meeting Ordinance Criteria 74 101 Second bids from local vendors 14 $ 487,000 21 $ 653,000 Second bids awarded to Focal vendors 8 $ 257,603 15 $ 463,511 Our Committee is satisfied that the program is meeting the original objectives,which were to direct more County business to local vendors in order to support small local businesses and stimulate the local economy at no additional County cost. In 2007/08,purchase orders were awarded to local businesses in more than 70%of the transactions that met the ordinance criteria as compared to 57%in 2006/07,redirecting nearly one-half million dollars into the local economy that would otherwise have been spent outside of Contra Costa County. Our Committee has requested another annual update in August 2009 for the 2008/09 fiscal year, and will continue to monitor progress and look for opportunities to improve the program.